Sell Your Home Yourself or Real Estate Agent
The main reason to sell your home yourself privately is to save in the amount you would have to pay an agency in commission and advertising expenses. Most agencies charge between 2 – 4 % of the sale price in addition to costs spent in the promotion and advertisement of the property. So if your asking price is $300,000, you could save in the region of $6,000 – $12,000.
There are companies who sell kits for prospective DIY sellers which include signage, legal advice and guidance on the selling process and some even cover the conveyancing. Cutting out the agent could certainly stand to save you thousands however, if you are considering selling privately, you will want to be 100% sure you have the negotiation skills and expertise in the property market to make informed and wise decisions about any offers that come your way. If you are only 97% sure and you can find a good agent you can trust with the sale of your property, perhaps you would be better off leaving it in their hands and save yourself the stress of promotion, taking enquiries and hosting inspections, negotiation, and paperwork.
Real Estate Agents
The majority of people choose to sell their property through an agent, knowing that to get the attention of the right audience and an offer of the best possible price, requires skills that they may not have. However as with any profession, some agents are not as skilled as others so it pays off to obtain advice from at least three agents before deciding which one will be able to best sell your home. When you contact them find out:
- what their fees are (including commission & added services);
- Whether they adhere to a code of ethics;
- Whether they are licensed.
It may be worthwhile paying for an independent valuation (not by someone who works for a real estate agent) before you begin your agent interview process. This will cost you, however you will then be better equipped to select an agent as you will know where you stand financially and be better able to tell which agents are not being honest with you. When you begin your search for a good agent, start by asking neighbors and friends who have recently sold or bought about their experiences with the agents you are considering using. Invite a few agents from your shortlist to inspect your home for a market appraisal. This service is normally free and will help you get a feel for the agent’s professionalism, expertise and likability to potential buyers. They will each have their own sales methods and it is up to you to choose the one which you believe is the most suited to the sale of your property.
Consider:
- the way they dress
- the questions they ask;
- the way they make you feel (don’t choose someone who makes you feel like a fool) and;
- their ability to communicate with you about the selling process. Hopefully they will sit down with you and discuss the sale and the types of agency. This is also an opportunity for you to ask them about:
- their knowledge of the local market;
- their sales records;
- their marketing tactics;
- customer service and feedback concerning the progress of the sale;
- their ethical standards;
- their experience in the business and
- perhaps even ask for recent clients’ testimonials.
Word of Advice: When you have invited the agent to inspect your property for a market appraisal, have ready information concerning local council rates, water rates notices and title particulars relating to your property. If you have done an alterations or extensions to the house, make sure you have a copy of the local council’s final approval of alterations as well.
Let them know why you are selling and what the most important factors are to you in the sale. The more information they can gather, the better they will be able to help determine the best way to sell your house. Albeit, if you don’t trust the agent just move onto the next one – your reason for selling should remain confidential or it may go against you when you are trying to negotiate.
Advice: The number one rule when hiring an agent: Never hire an agent you don’t trust!